The Central Bank of Nigeria has removed long-standing restrictions on banks seeking to access its Standing Lending Facility. Under the new directive, lenders will no longer face limitations on the discount window due to their participation in the Nigerian Foreign Exchange Market or primary auctions of government securities.

The policy shift was announced in a circular signed by Okey Umeano, the Acting Director of the CBN Financial Markets Department, on August 12, 2026. The regulator stated that the decision followed a comprehensive assessment of existing market practices across the foreign exchange, money, and fixed-income markets.

Lifting of Repo Suspensions and OMO Reforms

In addition to the discount window adjustments, the apex bank has lifted the suspension on Tenored Repo Operations. The CBN disclosed that it may now conduct repo operations across approved tenors ranging from 4 to 90 days to support liquidity management and improve money market functionality.

The CBN also revised its Open Market Operations participation framework to allow a wider range of investors to participate in both primary and secondary OMO markets. Eligible participants now include individuals, corporates, and non-bank financial institutions, who can bid and settle transactions through Deposit Money Banks.

Despite these liberalizations, the CBN confirmed that the existing restriction on institutions accessing the Discount Window and participating in OMO auctions on the same day will remain in force. The volume, tenor, and frequency of OMO issuances will continue to be determined by prevailing liquidity conditions using the existing single-bid auction format.